Kadin confident in strong opportunities for investment relocation amid global pressures

Jakarta (ANTARA) - The Indonesian Chamber of Commerce and Industry (Kadin) is confident that opportunities for investment relocation to Indonesia remain strong amid global pressures stemming from geopolitical dynamics, particularly the conflict in the Middle East that is triggering changes in the world’s supply chains.

“With this war, there are also many opportunities where we always talk about relocation,” said Kadin Indonesia Chairman Anindya Bakrie in Jakarta on Friday.

Anindya explained that the trend of investment relocation has actually been ongoing since the escalation of tensions between the United States and China.

Now, the dynamics in the Middle East are further strengthening the push for global business actors to seek more stable alternative supply chains.

“This relocation is now increasing further because they want to find other supply chain options from the Middle East,” he said.

He emphasised that Indonesia has great potential to capture this relocation, especially if it can offer a ready-to-use investment ecosystem so that investors can operate immediately.

“A place that is, so to speak, ready to use or hit the ground running. If Indonesia can provide that, it definitely has abundant human resources. It’s just about how to prepare the talent,” Anindya stated.

In addition, Indonesia is also considered to have advantages in terms of abundant natural resources. However, policy factors remain the main determinant in enhancing investment attractiveness.

Kadin assesses that ease of permitting, financing support, and adaptive policies are key to maximising these opportunities.

He also conveyed that the turmoil in the Middle East has broad global impacts, from rising energy prices and supply disruptions to increased production costs in various sectors.

According to him, this situation also has the potential to drive inflation, particularly in energy-dependent sectors, and weaken demand.

In the short term, Kadin also believes there is a need for flexibility from the financial sector, particularly banking, to maintain stable cash flows.

Despite facing global challenges, Anindya affirmed that Indonesia’s economic direction remains on the right path, as experience from previous crises shows that Indonesia is capable of recovering and growing stronger.